Dear Everyone,
I have a question on the applicability of the BOCW Act.
Principal employer made the super structure and paid the CESS upto date when it engaged more than 10 workers as a time.
Project then stalled (served "Notice of stoppage - Form II") and now project is doing work as the funding comes and as a result principal employer/contractor is employing less than 10 workers at the site at any time.
In this scenario's do the BOCW act apply and do we still have to pay 1% Welfare CESS?
Many Thanks in Advance!

From United Kingdom, London
Dear Sharma
As a matter of fact, the BOCWW Cess is 1% on Contract Value (except Land Cost and Compensation paid to workmen). Now you need not to make any payment. On completion of project, the concerned authority from Industrial Safety and Health department will come and inspect and assess the value and as per that they can ask for additional cess amount if required.
Further you need to pay the cess only for the work done during the Financial Year.

From India, Kumbakonam
Dear Boss
Thanks for your reply.
Assume another project where the project never engaged more than 10 workers at any time as per the contract labour registers maintained.
Is the BOCW ACT still applicable and if it is not applicable, then 1% CESS do arise. Is that correct, BOSS?

From United Kingdom, London
Dear Sharma
What is the purpose of arising such question. Hope you are a student. Is it your assignment. If it so, then introduce yourself and ask the complete question, so that our members can correctly guide you.
If you are an employee of any construction site, then also give complete details (except the personal details & Name of the company). If you ask such generic nature question, then the reply also will be vague. Better ask the question in specific.

From India, Kumbakonam
sir/maam, i am a PSU service holder and i have a bill of a contractor to pay. now my superiors are instructed me to deduct 1% labour cess from the contractors bill (for construction, commissioning works of Remote Electrification works etc). but, work order value which was awarded to the party on 2014 was not inclusive of labour cess. now the party has opposed in deduction of the labour cess as there was no inclusion of the same in the work order. kindly to suggest in this regards whether the deduction of labour cess from such contractor's bill is applicable. how the labour cess will be deposited to concerned authority in such cases.
From India, Guwahati
I got a labour contract for construction of a building after submitting tender. I got work order and I sign it where all terms and conditions were mentioned including all risks and liabilities of worker will be mine in case of accident in 2012. I completed the work and get my full payment and security money also in 2014. Now the institution sent me a letter to pay labour welfare cess@1% to them of my total bill amount of labour contract on 19.11.2016. Whether I am liable to pay the cess or not to them?
From India, Guwahati
Dear Mr. Vinod
Please go through the work order issued to you by your employer. What it says about the Statutory remittances? If the employer remitted the BOCWW Cess to the authorities, and as per the WO if the employer claim the same, then obviously you must pay. But how the Employer forgot to deduct from your running bills or in Final Bill and released the payment.

From India, Kumbakonam
Dear Sir,
Please tel me,
Q.1 -1st liability Labour Cess Deposited by Contractor /principal employer??
Q.2- Clearly Mention in Work Order Lacour Cess Deposited by Contractor behalf Principal Employer and one letter issue the contractor Regarding Deposited the Labour Cess and Principal Employer Running Work not intimate Contractor Regarding Labour Cess Deposit but last final billing Principal Employer intimate Contractor Regarding Labour Cess Deposit and hold the amount total Running bill 1% he is possible ???

From United States
Dear Members,
The confusion about payment of cess is because of the definition of employer. As per the act Section2(I). Employer in relation to and establishment means the owner thereof and includes...
so there is no clear cut definition when the work is carried out through a contractor.
I had talk with BOCW secretary. He also agreed that there is a confusion about employer.
But the point is the cess has to be paid. Who would be in a better position to pay the cess? It would be the owner of the establishment who is giving contract to the contractor.
Because the owner would have the idea of the amount of work done and there would definitely be multiple parties in the execution of the project.
If the responsibility is put on contractor then one contractor might pay the cess while other might not pay.
And even in a small work there would be multiple contractors executing a project. They might also argue that BOCW is not applicable to them as their employees do not exceed 10 on any day.
But at the same time the consolidated numbers of different contractors might exceed 10 on any day so BOCW would definitely apply.
So it is better that the Builder, owner pay cess on the cost of construction.
So while drawing of the work order it should clearly be mentioned that the cess would be paid by the owner,builder.
This is additional hassle. But suppose if the cess is not paid by the contractor then who would be held accountable? It would definitely be the Builder or the owner of that particular building, factory.
It would be much easier for the Labour Department to harass you then the individual contractor who might not be traceable.
The act is not limited to paying the cess. But also providing safe working environment to the workers. The owner, builder is supposed to ensure the facilities like cretches, safety equipment and living are provided to the workers.
Even the equipments like cranes, ropes etc. are to be certified. This is under BOCW rules of Maharashtra.
It is also your responsibility as a contractor to get the receipt of the cess paid on your work order from the builder, owner. So that in future you are not harassed for payment of cess.

From India, Mumbai
Dear All ++++++++++++++ Thanks for your inputs. Wish a happy and prosperous festival of lights, DIWALI +++++++++++++
From India, New Delhi

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